Answer:
E) none of the above
12.70% and 2.49% standard deviation
Explanation:
We multiply probability by the outcome to get the weighted amount, we add them and get the expected return.
probability outcome weighted
0.25 0.10 0.0250
0.45 0.12 0.0540
0.30 0.16 0.0480
expected return 0.1270
Now that we got the expected return at 12.7%
We now subtract the possible outcome with the expected return and square them:
(0.127-0.1)^2
(0.127-0.12)^2
(0.127-0.16)^2
Then we add them and divide by the sample which is 3
0.000622
²√ 0.000622 = 0.024944383
<u><em>Final step,</em></u> will be the square root which gives the standard deviation
of 2.49% = 0.024947
Please give the options in order for us to determine which is best.
The answer is A the firm should increase output!!!!
It would be an increase of $6.000 as <span>the effect in net income ($15 selling price less $13 variable cost (the original $12 plus the $1 shipping cost)) or $2 per scale. </span>